| The Tax Publishers2022 TaxPub(DT) 1381 (Del-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where taxability of ALV in respect of vacant commercial/self-occupied assets, was a highly debatable issue and also notice issued under section 274 read with section 271(1)(c) was bad in law as it did not specify under which limb of section 271(1)(c), the penalty proceedings had been initiated, i.e., whether for concealment of particulars of income or furnishing of inaccurate particulars of income; CIT(A) was justified in deleting the penalty levied under section 271(1)(c).
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Penalty under section 271(1)(c) - Leviability - Debatable issue - Defective notice--Non-specification of charge
AO made addition on account of ALV in respect of vacant commercial/self-occupied assets, which was upheld by CIT(A). Subsequently, AO levied penalty under section 271(1)(c). On appeal, CIT(A) deleted such penalty. Aggrieved, Revenue was in appeal. Held: Past history of assessee clearly showed that taxability of ALV in respect of vacant commercial/self-occupied assets, was a highly debatable issue and two views were possible. Since the assessee took a plausible view, the same could not be considered as filing of inaccurate particulars of income or concealment of particulars of income. Even otherwise, notice issued by AO under section 274 read with section 271(1)(c) was bad in law as it did not specify under which limb of section 271(1)(c), the penalty proceedings had been initiated i.e. whether for concealment of particulars of income or furnishing of inaccurate particulars of income. Hence, CIT(A) was justified in deleting the penalty levied under section 271(1)(c).
Followed:Pr. CIT, & Ors. v. Sahara India Life Insurance Company, Ltd. [ITA 475 of 2019] : 2019 TaxPub(DT) 6933 (Del-HC), CIT & ITO, Ward-6 (3), Bangalore v. SSA's Emerald Meadows (2016) 73 Taxman.com 241 (Karn-HC) : 2018 TaxPub(DT) 953 (Karn-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
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